Russian President Vladimir Putin is in New Delhi for a two-day state visit, commencing today, December 4, 2025, for the 23rd India-Russia Annual Summit. This visit, at the invitation of Prime Minister Narendra Modi, marks Putin's first to India since 2021 and underscores the enduring "Special and Privileged Strategic Partnership" between the two nations amidst a complex global environment. The summit aims to strengthen cooperation across defence, energy, trade, and global affairs.
Key Factors Dominating the Summit
Experts anticipate three primary factors to shape the discussions:
- Trade and Economic Imbalances: A major focus will be on rectifying the trade deficit favoring Moscow, which has widened to approximately $60 billion. India is likely to push for a "Food for Oil" arrangement, seeking increased agricultural exports to Russia to balance trade and reduce dependence on the US dollar. Russia is expected to introduce measures that grant Indian companies greater access to its market, with the aim of ramping up Indian exports of machinery, telecom equipment, chemicals, food, and pharmaceutical products. The acceleration of India's trade talks with the Eurasian Economic Union (EAEU) is seemingly an extension of bilateral measures. The 18-month work plan entails opening new EAEU markets to Indian micro, small and medium enterprises (MSMEs), farmers, and fishermen.
- Defense Cooperation: Defence remains a cornerstone of the India-Russia relationship, with Russia being India's largest defense supplier. Discussions are expected to cover the supply of Su-57 fighter jets and potentially additional S-400 squadrons. Further deals may include India's procurement of a new batch of S-400 air defence systems. Collaboration on joint manufacturing, spares, and long-term maintenance of military equipment will also be on the agenda. Moscow has cleared a key defence agreement with India, signalling renewed momentum in bilateral military cooperation.
- Geopolitical Alignment: Both nations are navigating a complex geopolitical landscape, facing challenges from the US and its allies. The summit will likely address the implications of the Ukraine conflict, developments in the Indo-Pacific, and Eurasian security. India aims to maintain its strategic autonomy and balanced relations with all major powers. Managing Western reactions to deeper India-Russia ties and balancing Russia's alignment with China with India's strategic concerns will be crucial.
Potential Beneficiaries: HAL and GMDC
Analysts suggest that the summit outcomes could positively impact specific Public Sector Undertaking (PSU) stocks.
- Hindustan Aeronautics Ltd (HAL): HAL is expected to be a key player due to its specialization in the production and upkeep of aircraft. The purchase of Sukhoi-57 stealth fighter jets and advanced S-500 air defense system is anticipated.
- GMDC: With discussions around rare earth metals expected, Gujarat Mineral Development Corporation (GMDC) could see increased attention.
Other defence stocks like Bharat Electronics (BEL) and Bharat Dynamics (BDL) may also be in focus, particularly regarding announcements about local manufacturing, joint ventures, or technology transfer.
Other Expected Outcomes
Several agreements are expected to be signed, covering trade, healthcare, education, culture, and media. Discussions may also include facilitating the movement of Indian workers to Russia and India's proposed free trade agreement with the Eurasian Economic Union. Banking integration is expanding, with several of the largest Russian banks stepping up their presence and operations in India, and direct settlements in “national currencies” dominating bilateral trade. The Russian Central Bank is planning to open a representative office in India.
President Putin is also scheduled to launch the new India channel of Russia's state-run broadcaster RT, signalling an expansion of media outreach. Following the summit, President Murmu will host a state banquet in Putin's honor.
